NUPRC gives 31 oil block winners payment deadline

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern warning to 31 companies that emerged as winners of 37 oil and gas blocks during the 2025 Licensing Round. These companies are required to pay their signature bonuses within the designated timeframe or face the forfeiture of their provisional awards to reserve bidders.

The commission's warning comes exactly one month after the commercial bid conference in Abuja, where the successful bidders were identified. The NUPRC has commenced the compliance process for signature bonus payments following the issuance of provisional awards. According to the NUPRC, winners who fail to meet the payment deadline, as stipulated by the Petroleum Industry Act (PIA), will lose their bid guarantee and their provisional awards will be transferred to the next ranked reserve bidders.

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Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders.

The 37 blocks comprise Petroleum Prospecting Licences (PPLs) located in various regions, including the Niger Delta (onshore, shallow water, and deep offshore), the Benin Basin, Anambra Basin, Chad Basin, and Benue Trough. The NUPRC has published the names of the 31 successful companies and the ranked reserve bidders for each block. A total of 143 companies participated in the licensing round, submitting approximately 200 bids for the 37 blocks. Notably, 13 of the 50 blocks initially offered received no bids.

Under the PIA and applicable guidelines, successful bidders must pay signature bonuses ranging from $3 million to $7 million per block. They are also obligated to provide required guarantees and satisfy other post-award conditions within a strict 90-day window. NUPRC CEO Mrs. Oritsemeyiwa Eyesan has urged the awardees to make prompt payments and commence asset development. Failure to comply will result in the automatic transfer of the award to the next reserve bidder.

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Exactly a month ago, the NUPRC hosted the 2025 commercial bid conference in Abuja where 31 companies emerged winners of 37 oil and gas blocks. Having issued the winners with the provisional awards, compliance with the payment of signature bonuses has already begun.